Sales of existing homes came out slightly below expectations, 5.52 million against 5.58 million predicted. This is a drop of 1.8%. House prices are rising. The median price is up 6.5% y/y and the average price is up 4.9%.
The US dollar is marginally lower in the aftermath of the announcement. The general trend remains to the downside.
The annualized level of sales of existing homes was expected to slide by 1% to 5.58 million in June from 5.62 million in May (before revisions).
The US dollar slightly extended its drops in the wake of the new week. The falls were more pronounced against the yen and also the Australian and Canadian dollars.
Earlier, Markit’s services sector PMI beat expectations: 53.2 points against 52 predicted. This is the preliminary publication for July. The final number is released in early August.
Most transactions in the housing sector are for existing, second-hand homes. However, sales of new homes trigger wider economic activity.
The big event of the week is the Fed decision: Fed preview: transitory or not transitory? This is the question
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